Consumer Confidence Recovers Slowly
By Fabián Borges
fborges@ticotimes.net

The University of Costa Rica (UCR) unveiled the results of its latest survey on consumer confidence last Friday, revealing a slight increase during the last seven months, but an overall pessimistic perception of the economy.

Between Sept. 17 and 27, pollsters called 807 Costa Ricans from all parts of the country to ask their opinion on the present and the future of the national economy. The survey consisted of five questions -- two on personal finances, two on overall perception of the business climate and one on their willingness to spend money on durable goods such as houses, cars and major home appliances. The poll claims a margin of error of 3.3%.

The results were then tallied and averaged to produce a general figure of consumer confidence, between 0 and 100.

Consumer confidence totaled 39.6, slightly higher than the 37.2 reported last March, when oil prices were at an all-time high in anticipation of the U.S.-led war in Iraq. Despite the recovery, consumer confidence is still significantly lower than the 44.5 reported during the September, 2002, survey.

Despite optimistic economic-growth forecasts, which predict the economy will grow 5% in 2003 (TT, Aug. 15), Ticos aren't convinced the economy is improving because most of the current growth is centered around export businesses, which employ less than 10% of the country's total workforce.

In recent months, several business chambers have noted the sharp contrast between the situation facing companies that produce for the local market and those that export. The business chambers argue that the recent wave of economic growth only includes a small fraction of the country's export businesses, while the local market is not showing any signs of recovery (TT, July 24).

Consumer perception has deteriorated to the point where only 35% of families surveyed said they were in a position to buy durable goods in the coming months, compared to 46% one year ago.

Only 21.7% of those polled said their families were better off now than a year ago, compared to 40.5% who considered they were worse off. When asked how they would fare over the next year, 31.5% predicted that 2004 would be better, compared to 34% who said they think things will get worse.

The survey also revealed strong signs of pessimism regarding the country's overall political climate.

Consumers see dropping presidential approval ratings, recent strikes by teachers and public service unions, rising electricity and gas prices, and an uncertain future for state-owned monopolies under a possible free-trade agreement between the United States and Central America (CAFTA) as reasons to save their money and avoid unnecessary spending, the survey stated.

Blame Game Follows Ferry Collision in Puntarenas

Two people were injured Sunday afternoon when the Playa Tambor and Peninsular passenger ferries crashed off the country's Central Pacific coast, the daily Al Día reported.

A 38-year-old woman identified by her last name, Alvarado, was transferred to Puntarenas' Monseñor Sanabría Hospital with mild injuries. Three cars traveling on the Tambor ferry suffered serious damage as a result of the collision.

Both ferry companies blamed the other one for the incident.

Olivia Castro, a representative for the Tambor ferry, alleged the captain of the Peninsular was responsible for the accident. After crashing into the Playa Tambor ferry, the captain of the Peninsular continued on to port. Castro said the Tambor ferry company is planning to sue the Peninsular's captain for damages.

Albin Jiménez, representative of the Paquera Integral Development Association, the company that owns the Peninsular ferry, said his company also plans to file a lawsuit. In his opinion, the crash was the result of an ongoing problem caused by the Tambor boat refusing to respect the schedule.

"Since they refuse to keep their distance, these accidents happen," Jiménez said. "It will be up to the courts to decide who was responsible."